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Wednesday, 07 January 15
FUEL EFFICIENT SHIPS MAKE LESS SENSE IN LOWER BUNKER PRICE MARKET, BUT FUEL COSTS ARE BOUND TO RISE AGAIN
 The shipping industry entered 2015 on mixed emotions, as a relatively buoyant tanker market is met by a rather lackluster dry bulk market. Still, all ship owners will undoubtedly be happy about the fact that the most important cost driving factor, bunker prices, are way down since the same period of last year. In fact, bunker prices are down by more than 30% since last year, as already, by the end of November of 2014, the cost of Heavy Fuel Oil (HFO) in Fujairah had declined to $460 per metric ton from an average of $609/mt over the first six months of 2014. That’s already a reduction of 24% and more has come since then, on the back of constantly declining crude prices.
Given the fact that bunker prices is the biggest factor in a ship’s operating costs, that kind of reduction is rather significant and one which can offset any loss in terms of freight rates. Thus, ship owners can take advantage of this low cost environment and increase their earnings, through the subsequent fall of OPEX. On the other hand, other factor like the new fuel efficient vessels, or slow steaming are coming into play.
According to a recent report from Poten & Partners, “due to the high oil prices over the last couple of years and the anticipation of continuing high prices in the future, owners have made operational adjustments by utilizing slow steaming on the ballast leg of a voyage, while shipyards and engine manufacturers have worked hard to improve the fuel efficiency of new ships. Using a VLCC as the basis for such analysis as the longer voyages benefit relatively more from fuel efficiency, we use a 2007 built VLCC ordered when HFO prices were around $160/MT and a modern 2013 built VLCC. Vessels can vary significantly in their fuel consumption, both through design and over time, dependent on the condition of the hull paint, etc. The modern vessel in our example saves 7 tons/day in laden condition compared to the older design and 4 tons/day while in ballast. For the comparison we will use the typical VLCC round trip voyage from Ras Tanura to Chiba using the current fuel price ($460/MT) and the average price during the first 6 months of 2014 ($609/MT). On the round trip, the fuel efficient vessel saves $116,200 in fuel with current prices and $151,500 in the higher price environment compared to the 2007 built vessel. This represents savings of $2,179/day in time charter equivalent (TCE) at current bunker prices and $2,839 at 2014H1 bunker prices”.
Poten added that “in order to improve TCE, owners have made operational adjustments by slow steaming during the ballast leg of the voyages, and during the laden leg where it was permitted in the charter party. This helps the owners by improving the economics on individual voyages as the fuel cost savings more than offset the longer steaming time when the market is low. An added benefit is that slow steaming reduces the efficiency or the fleet as more vessels are needed to move the same volume of cargo. Earlier in the year, when the rates were lower, slow steaming made more sense as the additional revenue that could be earned during the additional 3.9 ballasting days was lower than the fuel savings. At current market rates and lower bunker prices, this situation has shifted. At least for the vessel and voyage combination in our example, increasing the ballast speed could prove to be beneficial. The situation could be different for other vessels and voyages, but it makes the case for owners to run the numbers. The benefits of fuel efficient designs might have been reduced for now but the investment is for 20+ years and fuel prices are likely to increase again in the future”, the analyst concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Tuesday, 20 January 15
INDIA TO SURPASS THE UNITED STATES AND BECOME THE SECOND-LARGEST COAL CONSUMER IN THE WORLD BY 2019 - IMF
COALspot.com: In 2013, coal added more primary energy than any other fuel and was the fastest-growing fossil fuel, enhancing its position as the se ...
Tuesday, 20 January 15
INDONESIAN COAL OUTPUT SEEN RISING, DESPITE FALL IN ITS PRICE
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 declined month on month and week over week, but Indonesian Coal Output Seen Rising. T ...
Tuesday, 20 January 15
NEWCASTLE COAL SWAP FOR Q1' 2015 DELIVERY DECLINED 2.83% M-O-M
COALspot.com: API 5 FOB Newcastle Coal swap for Q1’ 2015 delivery declined US$ 1.45 per MT (-2.83%) month over month and US$ 0.50 (-0.99%) we ...
Monday, 19 January 15
HBA FALL TO FRESH LOWS; COAL OVERSUPPLY WILL CONTINUE TO PUSH PRICE DOWN
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down Indonesian coal bench mark price this month to US$ 63.84. T ...
Monday, 19 January 15
CFR SOUTH CHINA COAL SWAPS REMAIN WEAK
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2015 delivery declined US$ 3.37 (-5.63%) per MT month over month and US$ 0.74 (-1.29%) ...
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- Holcim Trading Pte Ltd - Singapore
- European Bulk Services B.V. - Netherlands
- Power Finance Corporation Ltd., India
- Sojitz Corporation - Japan
- Karbindo Abesyapradhi - Indoneisa
- Cement Manufacturers Association - India
- Central Java Power - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sical Logistics Limited - India
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Trasteel International SA, Italy
- TNB Fuel Sdn Bhd - Malaysia
- Oldendorff Carriers - Singapore
- SN Aboitiz Power Inc, Philippines
- Commonwealth Bank - Australia
- Kohat Cement Company Ltd. - Pakistan
- Globalindo Alam Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Leighton Contractors Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Marubeni Corporation - India
- Wilmar Investment Holdings
- PTC India Limited - India
- Australian Coal Association
- Posco Energy - South Korea
- The State Trading Corporation of India Ltd
- Singapore Mercantile Exchange
- PetroVietnam Power Coal Import and Supply Company
- Siam City Cement PLC, Thailand
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Ind-Barath Power Infra Limited - India
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Sidhee Cement - India
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- Coalindo Energy - Indonesia
- Electricity Authority, New Zealand
- Merrill Lynch Commodities Europe
- Bulk Trading Sa - Switzerland
- Petron Corporation, Philippines
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Bhushan Steel Limited - India
- VISA Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- International Coal Ventures Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Pendopo Energi Batubara - Indonesia
- Uttam Galva Steels Limited - India
- Coal and Oil Company - UAE
- Videocon Industries ltd - India
- Ministry of Transport, Egypt
- Coastal Gujarat Power Limited - India
- Goldman Sachs - Singapore
- Orica Mining Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Tamil Nadu electricity Board
- London Commodity Brokers - England
- Mintek Dendrill Indonesia
- Rio Tinto Coal - Australia
- Eastern Energy - Thailand
- Baramulti Group, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Banpu Public Company Limited - Thailand
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- PowerSource Philippines DevCo
- Renaissance Capital - South Africa
- Barasentosa Lestari - Indonesia
- GMR Energy Limited - India
- Antam Resourcindo - Indonesia
- Thiess Contractors Indonesia
- India Bulls Power Limited - India
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- Edison Trading Spa - Italy
- TeaM Sual Corporation - Philippines
- Vedanta Resources Plc - India
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Latin American Coal - Colombia
- Global Business Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- ASAPP Information Group - India
- Tata Chemicals Ltd - India
- South Luzon Thermal Energy Corporation
- The Treasury - Australian Government
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- Kobexindo Tractors - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Essar Steel Hazira Ltd - India
- Grasim Industreis Ltd - India
- Borneo Indobara - Indonesia
- Riau Bara Harum - Indonesia
- Binh Thuan Hamico - Vietnam
- New Zealand Coal & Carbon
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Independent Power Producers Association of India
- Bangladesh Power Developement Board
- Gujarat Mineral Development Corp Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Heidelberg Cement - Germany
- Neyveli Lignite Corporation Ltd, - India
- GN Power Mariveles Coal Plant, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Oil Corporation Limited
- Chettinad Cement Corporation Ltd - India
- Indogreen Group - Indonesia
- Australian Commodity Traders Exchange
- Makarim & Taira - Indonesia
- Economic Council, Georgia
- Indian Energy Exchange, India
- Rashtriya Ispat Nigam Limited - India
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Bhoruka Overseas - Indonesia
- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Medco Energi Mining Internasional
- Global Coal Blending Company Limited - Australia
- Iligan Light & Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- Orica Australia Pty. Ltd.
- Alfred C Toepfer International GmbH - Germany
- Sinarmas Energy and Mining - Indonesia
- Intertek Mineral Services - Indonesia
- Attock Cement Pakistan Limited
- Mjunction Services Limited - India
- Semirara Mining and Power Corporation, Philippines
- Aditya Birla Group - India
- Formosa Plastics Group - Taiwan
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Metalloyd Limited - United Kingdom
- Cigading International Bulk Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Electricity Generating Authority of Thailand
- Meenaskhi Energy Private Limited - India
- Mercator Lines Limited - India
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Indo Tambangraya Megah - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sree Jayajothi Cements Limited - India
- White Energy Company Limited
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- Standard Chartered Bank - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Parry Sugars Refinery, India
- Minerals Council of Australia
- Parliament of New Zealand
- Aboitiz Power Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Semirara Mining Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- The University of Queensland
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- CIMB Investment Bank - Malaysia
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Kumho Petrochemical, South Korea
- Straits Asia Resources Limited - Singapore
- Kaltim Prima Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- Mercuria Energy - Indonesia
- SMC Global Power, Philippines
- Salva Resources Pvt Ltd - India
- Siam City Cement - Thailand
- Altura Mining Limited, Indonesia
- Interocean Group of Companies - India
- MS Steel International - UAE
- CNBM International Corporation - China
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- Madhucon Powers Ltd - India
- Deloitte Consulting - India
- Jindal Steel & Power Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- Therma Luzon, Inc, Philippines
- Xindia Steels Limited - India
- Chamber of Mines of South Africa
- Agrawal Coal Company - India
- Carbofer General Trading SA - India
- Sindya Power Generating Company Private Ltd
- Ministry of Mines - Canada
- Sakthi Sugars Limited - India
- Global Green Power PLC Corporation, Philippines
- GVK Power & Infra Limited - India
- ICICI Bank Limited - India
- Africa Commodities Group - South Africa
- Energy Link Ltd, New Zealand
- Jorong Barutama Greston.PT - Indonesia
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